Comcast (CMCSA) started 2025 on a shaky note. The telecom giant is already suffering from a mass exodus of cable customers as streaming services rise in popularity. In addition to this loss, it has recently spotted another sharp change in customer behavior.
In Comcast’s first-quarter earnings report for 2025, it revealed that while its domestic broadband revenue increased by 1.7% due to higher average rates, it lost 199,000 broadband subscribers during the quarter, a steeper loss than analysts predicted.
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The mass exodus of internet customers comes after Comcast, which sells internet under the name Xfinity, announced in December that it will raise prices for its Xfinity services this year.
The company said it hiked fees as part of “strategic investments” to make its network “smarter, faster, and more reliable,” which frustrated customers.
Related: Comcast raises red flag about unexpected customer behavior
It also recently reduced Xfinity’s monthly autopay discount from $5 to $2 for customers who use credit and debit cards to pay their bills.
During an earnings call in April, Comcast President Mike Kavanaugh said that more customers are ditching the company’s internet services due to the lack of “price transparency and predictability” and the low “level of ease of doing business.”
Comcast makes unexpected move to win back customers
After this startling loss, Comcast has recently made a bold move to make its internet services more attractive to customers.
The company announced its new “everyday pricing structure,” which includes three different pricing tiers for four internet plans that will no longer have data caps, according to a recent press release.
The internet plans include 300 Mbps, 500 Mbps, 1 Gbps, and 2 Gbps, and each now offers a regular monthly price, a monthly price with a one-year price lock guarantee, and a monthly price with a five-year price lock guarantee.
Related: DirecTV hopes to win back fleeing customers with a generous offer
The plan's regular monthly price is usually the most expensive option, while the plan with the one-year price lock guarantee is the cheapest.
For example, its cheapest internet plan, 300 Mbps, has an everyday price of $70. However, customers can pay $55 a month if they sign up for the five-year price lock guarantee or $40 a month for the one-year price lock guarantee.
“We said we were going to go ‘all-in’ on a new pricing strategy. and we are delivering with our 5-year price lock and our new everyday price plans,” said Chief Operating Officer of Connectivity & Platforms Steve Croney in the press release. “Now all our Xfinity Internet packages are built on simplicity and transparency – no hidden fees, no confusion – just the best, most reliable and secure WiFi that sets a new standard for the ultimate connected experience.”
Comcast has been stepping up its game to beat ‘intense competition'
The move from Comcast comes after Chief Financial Officer Jason Armstrong said during the earnings call in April that the company is facing “intense” competition, especially from fixed wireless internet providers.
Fixed wireless internet provides a high-speed connection using radio signals instead of cables. It can provide internet access to remote or underserved areas where traditional internet is unavailable. It is also usually offered at a lower price than traditional internet services.
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Companies such as T-Mobile, Verizon, and AT&T all offer fixed wireless internet. One of Comcast's main competitors, Spectrum, even reported a higher-than-expected loss of internet customers during the first few months of this year as fixed wireless internet becomes more popular.
“I would tell you that the newer competitor in the last few years has obviously been fixed wireless,” said Armstrong. “They’re adding 1,000,000 subscribers per quarter, so that’s sort of the competitive intensity that we’re seeing that’s sort of incremental. We are competing aggressively with it.”
It is no surprise that more consumers are looking for cheaper options for internet services.
According to a recent survey from CNET, 63% of U.S. adults saw the monthly price of their home internet service increase last year. On average, they paid $195 more for internet service in 2024 than in 2023.
These price hikes even pushed one in five U.S. adults to either downgrade their service, switch internet providers, or cancel their service.
In response to this concerning trend, Comcast has been ramping up its efforts to beat its competition over the past few months.
In February, Comcast increased Xfinity Internet speeds by 50% to 100% for more than 20 million customers for free.
The following month, it also announced a five-year price lock for Xfinity internet plans, where prices range between $55 and $105 a month. The plans also don’t require an annual contract, which allows customers to cancel anytime without penalty.
Related: Spectrum struggles to reverse alarming customer behavior
